Mortgage cheaper than rent?

Massively depends on area and when you bought/how long you have left to pay it off. We own our house and pay £450 a month for our mortgage. All the houses on our row are absolutely identical, and the one a few doors down went up for rent 6 months ago at £1600 pm. But our neighbours who've recently moved in as first time buyers pay £1000 a month. We were lucky we bought our first hose when house prices were low, made a good profit and got a great rate when we moved again. I definitely think it's cheaperthe majority of the time, but there are a lot of factors at play, and I'm sure location plays a huge part. We're on the edge of the Cotswolds.

It was certainly true when we first bought, the mortgage company wouldn't give us a mortgage that cost less per month than we were paying in rent! So infuriating. You do have maintenance on your own house as well but just mortgage versus rent mortgage could well be cheaper.

It depends. How are you factoring the deposit? Which region?
You can generally rent a £1.3 million london property for less that a 95% mortgage on that property .
Ie mortgage at 5% interest 7,000
Rent probably 3500 / 4000

People who have mortgages of £500 per month did not buy at today’s prices so not a fair comparison.

I could not buy the house I rent for less than what I pay in rent, even with a 10% deposit. Mortgage payments would be about £350 per month more. It depends very much on what you have to put in and where you live.

We pay £500 a month mortgage. The house next to us rents for £1300. Absolutely no difference, both modernised to a similar standard. Same garden space. Same parking.

So they effectively pay three times what we pay to live in exactly the same space.

Definitely cheaper mortgage than rent in our case!

Yes, but why are you saying it? What difference does it make? Whether you think mortgages being cheaper is misinformation or not, you'll always have tenants because so many cannot raise a deposit or don't want to settle in one place.

Certainly true round here. You can buy a three bed terraced house for £180k, so £800 a month mortgage. Equivelent house for rent £1000 a month.

well not in the early days always - ours jumped from renting 1300£ to 1800£ mortgage then it jumped up to 2k when interest rates went up

But recently its gone back down to 1300 so it does get cheaper everntually - and rent likely would have kept going up !

Ex was renting (2020) for £595 a month. After 18 months (2022) he bought the next door but one house for £570 mortgage. Rent of his old house went up to £650, then £750 and some neighbours are now paying £900 for same style house. Definitely cheaper than mortgage!

Of course it's cheaper to rent. The mortgage on my five bed is £667, rising to £860 when our fix ends. For the same size house in the same town, the cheapest I can find is £1500.

It tends to be true over time, even if a mortgage may be be more to begin with. Rents go up over time, while a house purchase stays at the amount you originally bought it for even though the value increases. Sure, mortgages can go up too, but nothing like rents do.

We bought our house over 30 years ago when mortgages were cripplingly high (>12%). It was still less than a rental would be in the same area (we couldn't have afforded it tbh). The value is now 4 times what we paid for it. AND we are now mortgage free. No brainer.

The answer to this is going to vary wildly depending on the amount of equity you put down when buying, how much you borrow.. loan to value and your mortgage offer/rate. Our mortgage is about a quarter of what our house would be to rent but that’s because we’ve paid a load off and have very low rate still.

i pay £960 mortgage a month for a 4 bed detached and friend pays £1400 for 3 bed maisonette … same area. My mortgage will be finished in 10 years, she’ll pay that for a lifetime … the difference is having the deposit to getting on the ladder.

But surely you can see if the rent he paid for all those years went towards a mortgage not only would he have his investments he would also have a house (part or fully paid) and not need to buy one! Assuming he wasn't getting reduced rent for some reason.

You might lose money if you bought a house to let based on today's prices vs what you can charge in rent but in 10 years time when your monthly mortgage remains at a similar monthly payment, maybe a little higher or lower depending on rates, the rental payments will have gone up in that time and you'll generally be making a profit.
What are you actually trying to ask here. Yes if you bought a house 100% mortgage today and rented it out today, then the mortgage would probably be higher than rent, but surely it's the long game not a quick instant profit

I've just bought. I was renting for the last six years. My mortgage is marginally lower than my rent was, but my rent had not increased over that time, and I am paying over less than the usual 25 years.

The rent now, as they increased it when I left, is more than £270 more than my mortgage.

I'm in a bigger property with the same number of bedrooms very close to where I used to live.

Where I lived with my ex..his mortgage fixed at £400 a month
Average rent where we lived, around 2k a month but one neighbour was paying 5.5 K !!! (Buckinghamshire) . This was two years ago

My thoughts exactly.🍿

Around £300,000. These are 5 bed townhouses so there is a bit of a range depending on upkeep, size of garden etc but that’s pretty average.

My mortgage is £1700 pcm, ndn has just gone on for rental at £2200. Identical houses. I don’t think you understand the business you have been in for however long op.

My daughter was paying 750 a month rent for a one bedroom flat in Leeds. Has now purchased it and mortgage is about half that!